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The Ellsworth Growth and Income Fund Preferred currently trades below par, offering a compelling yield-to-worst of nearly 7.2%. ECF-A's lagging recovery relative to iShares 20+ Year Treasury Bond ETF and Vanguard Long-Term Corporate Bond ETF, driven by lower liquidity, creates a tactical alpha opportunity as spreads are expected to narrow. Robust asset coverage, mandated by the Investment Company Act of 1940, provides structural protection and enhances the risk/income profile for ECF-A holders.
CEFs fell this week: 7 of 26 sectors rose on price (average -0.88%) and 12 of 26 on NAV (average -0.30%); munis led while convertibles lagged. DMA announced a buyback and +2.2% distribution raise as it entered its term measurement period; ASGI's rights offering was about 34% subscribed at $19.28. At the fund level, NMS (+5.11%) led on price and KF fell the most (-15.39%); on NAV, BGR (+4.62%) led while KF dropped -16.09%.
Ellsworth Growth and Income Fund Ltd. (NYSEAMERICAN:ECF - Get Free Report) major shareholder Saba Capital Management, L.P. purchased 9,969 shares of the firm's stock in a transaction on Thursday, October 15th. The shares were purchased at an average cost of $11.62 per share, with a total value of $115,839.78. Following the completion of the transaction,
The Ellsworth Growth and Income Fund offers a 7.43% yield and has outperformed both convertible bonds and the S&P 500 over the past few years. ECF primarily invests in convertible bonds, providing better real wealth preservation than traditional bonds, especially in inflationary environments. The fund's portfolio is notably diversified and overweight in energy, utilities, and healthcare, differing from typical equity and convertible bond indices.
Closed-end funds can often be quite interesting to income-focused investors as they pay out relatively higher distribution yields. Another key factor is that the funds can trade at discount/premiums to the net asset value per share. While some funds perpetually trade at deep discounts, there are reasons to believe that some don't deserve to.
RYE, N.Y., Aug. 12, 2026 (GLOBE NEWSWIRE) -- The Board of Trustees of Ellsworth Growth and Income Fund Ltd. (NYSE American: ECF) (the “Fund”) declared a $0.22 per share cash distribution payable on September 23, 2026 to common shareholders of record on September 16, 2026. The $0.22 quarterly distribution is a 16% increase from $0.19 per share.
Ellsworth Growth and Income Fund trades at an -11% discount with a solid long-term track record and recent outperformance versus the S&P 500. Activist investors, notably Saba Capital Management (~12.3% stake), offer a potential catalyst for discount narrowing or structural changes. ECF's 5.8% yield is lower than peers, but a 19% distribution hike and differentiated portfolio exposure enhance its appeal for income and appreciation.
Ellsworth Growth and Income Fund offers a balanced mix of convertible securities and common stocks, targeting both capital growth and current income. ECF trades at a 12.4% discount to NAV, with a 5.73% dividend yield, outperforming peers and benchmarks on a NAV basis over 3 and 10 years. The fund's moderate 13% leverage and sector diversification support its defensive profile, while active management enables tactical upside capture.